Arhaus (NASDAQ:ARHS) Issues Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Arhaus (NASDAQ:ARHS) posted its quarterly earnings data on Thursday. The company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.16 by $0.12, FiscalAI reports. Arhaus had a return on equity of 17.42% and a net margin of 4.91%.The firm had revenue of $384.90 million during the quarter, compared to the consensus estimate of $365.66 million. During the same period in the prior year, the company earned $0.25 EPS. The firm’s revenue was up 7.5% compared to the same quarter last year.

Here are the key takeaways from Arhaus’ conference call:

• Positive Sentiment: Arhaus reported record second-quarter net revenue of approximately $385 million, up 7.4% year over year, while comparable written sales rose 12.5%. Management cited broad-based demand, resilient high-end consumers, larger home projects, and strength across upholstery, outdoor, customization, and design channels.
• Positive Sentiment: The company maintained its full-year revenue outlook of $1.43 billion to $1.47 billion and raised profitability guidance to net income of $71 million to $80 million and adjusted EBITDA of $160 million to $171 million, reflecting tariff refunds and continued execution.
• Negative Sentiment: Second-quarter profitability benefited from a one-time $23.8 million recovery of previously paid IEEPA tariffs; excluding the prior-period inventory benefit, gross margin declined to 40.7% and adjusted EBITDA fell 8.9% year over year. Higher fuel, shipping, showroom, and technology costs remain significant headwinds.
• Positive Sentiment: Arhaus said inventory availability improved, aged inventory declined, and client deposits increased 11.8% year over year, supporting conversion of written orders into future revenue. The company is also investing tariff-refund proceeds in expanded catalogs, marketing, digital initiatives, and a new POS platform, while continuing its showroom expansion and trade-program rollout.

Arhaus Trading Down 0.8%

Shares of ARHS traded down $0.08 during midday trading on Friday, reaching $9.60. The company had a trading volume of 2,021,862 shares, compared to its average volume of 1,418,520. Arhaus has a 1-year low of $5.57 and a 1-year high of $12.93. The company has a quick ratio of 0.46, a current ratio of 1.25 and a debt-to-equity ratio of 0.14. The firm has a 50 day simple moving average of $7.64 and a 200-day simple moving average of $7.79. The stock has a market cap of $1.36 billion, a PE ratio of 19.20, a price-to-earnings-growth ratio of 3.90 and a beta of 2.29.

Institutional Investors Weigh In On Arhaus

A number of hedge funds have recently modified their holdings of ARHS. Wasatch Advisors LP increased its position in Arhaus by 6.8% during the second quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company’s stock worth $110,137,000 after purchasing an additional 811,337 shares during the last quarter. Bank of America Corp DE boosted its holdings in Arhaus by 9.4% in the 2nd quarter. Bank of America Corp DE now owns 3,213,288 shares of the company’s stock valued at $27,859,000 after purchasing an additional 275,835 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of Arhaus by 10.7% in the 4th quarter. Renaissance Technologies LLC now owns 1,754,000 shares of the company’s stock valued at $19,662,000 after buying an additional 169,200 shares during the period. Punch & Associates Investment Management Inc. grew its stake in shares of Arhaus by 1.1% in the 3rd quarter. Punch & Associates Investment Management Inc. now owns 1,091,153 shares of the company’s stock valued at $11,599,000 after buying an additional 11,762 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Arhaus by 8.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 994,060 shares of the company’s stock worth $11,144,000 after buying an additional 78,783 shares during the last quarter. Hedge funds and other institutional investors own 27.88% of the company’s stock.

More Arhaus News

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Q2 results exceeded expectations: Arhaus reported adjusted earnings of $0.28 per share versus the $0.16 consensus estimate, while revenue rose 7.4% year over year to $384.9 million, above the $365.7 million expected. Arhaus Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Demand and profitability improved: Comparable written sales increased 12.5% and comparable delivered sales rose 4.0%. Net income grew 13.1% to approximately $40 million, while adjusted EBITDA increased 16.8% to $70 million, supported partly by tariff recoveries. Arhaus Reports Second Quarter 2026 Financial Results
• Positive Sentiment: 2026 profit outlook was raised: Arhaus maintained its $1.43 billion–$1.47 billion revenue forecast but increased its net income outlook to $71 million–$80 million and adjusted EBITDA guidance to $160 million–$171 million, reflecting $37.8 million of received tariff refunds plus interest. Arhaus Updates 2026 Outlook After Tariff Refunds
• Positive Sentiment: Analyst sentiment improved: Craig Hallum upgraded ARHS from Hold to Buy and set a $12 price target, implying substantial upside relative to the referenced share price. Analyst Rating Update
• Neutral Sentiment: Piper Sandler raised its target to $9 but retained a Neutral rating, while Telsey Advisory Group raised its target to $10 and maintained Market Perform. The mixed ratings suggest analysts see improved fundamentals but limited near-term upside after the rally. Benzinga Analyst Update
• Negative Sentiment: The profitability benefit is partly dependent on one-time tariff refunds. Inventory increased 4.3%, cash declined following a special dividend, and third-quarter revenue guidance of $355 million–$375 million is slightly below consensus at the midpoint.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Piper Sandler increased their target price on shares of Arhaus from $8.00 to $9.00 and gave the company a “neutral” rating in a research report on Friday. Morgan Stanley boosted their price target on shares of Arhaus from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research report on Friday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Arhaus in a research note on Wednesday, June 17th. Guggenheim cut their price objective on shares of Arhaus from $14.00 to $12.00 and set a “buy” rating for the company in a report on Friday, May 8th. Finally, Wall Street Zen raised shares of Arhaus from a “sell” rating to a “hold” rating in a research note on Monday, July 20th. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $10.12.

About Arhaus

Arhaus (NASDAQ:ARHS) is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.